The Federal Reserve Board on Tuesday
First Southwest was ordered to increase board oversight and get written approval from the Fed before declaring, taking or paying any dividends. It was also required to receive written approval before incurring, increasing or guaranteeing any debt or purchasing or redeeming any shares of stock and to submit a yearly cash flow projection at least one month prior to the beginning of each calendar year starting in 2011.
The agreement also set provisionary compliance guidelines specific to any changes in executive officers and required the company to submit written compliance progress reports at the end of each quarter.